Trump's New Tariffs on Pharma, Heavy Trucks, Furniture: What We Know

Tariffs Overview - The US is imposing tariffs on heavy trucks (25%), kitchenware, furnishings, and pharmaceuticals [2] - A 100% tariff on pharmaceuticals is scheduled to take effect next Wednesday [2] - These tariffs stem from ongoing Commerce Department investigations under Section 232 [3] - This sectoral process is similar to those used for tariffs on aluminum, steel, automobiles, and auto parts [4] Pharmaceutical Sector Impact - A 100% tariff on all pharmaceuticals could increase the average tariff rate by 330 basis points (3.3%) [5] - Companies building US manufacturing plants may be exempt from the pharma tariffs [6] - Major drugmakers like AstraZeneca, Johnson & Johnson, and Merck have been anticipating action in the pharma sector [6] - These companies have pledged billions of US dollars in manufacturing investments [7] Uncertainties and Open Questions - It is unclear if existing investments will satisfy the requirements for exemption [8] - The impact on existing tariff agreements, such as the US-EU agreement to impose only 15% tariffs on pharmaceuticals, is uncertain [8] - Many questions remain unanswered with the deadline approaching next Wednesday [9]